PCE (Personal Consumption Expenditures Price Index)
The Fed's preferred inflation metric. Reflects changes in consumer spending patterns and covers a broader range of price movements than CPI.
Market Impact
RISING / BULLISH
Strengthens Fed hawkishness, leading to higher terminal rates. Weighs on tech stocks.
FALLING / BEARISH
Raises hopes for a Fed dovish pivot, giving general market relief.
Context 2026
Decreasing rent ratios and deflationary pressure in 'intangible asset services' due to AI productivity gains contribute to PCE stability. Holds the key to the Fed achieving its 2% target.
OmniMetric Relevance
High. Adopted as higher-precision input data than CPI for predicting policy rate changes.